Organon on Monday announced significant executive changes and revealed the findings of an internal Audit Committee investigation into its sales practices, which led to the immediate resignation of Kevin Ali as chief executive officer and board member.
Ali will not receive severance or equity-related retirement benefits in connection with his departure.
The Board of Directors has appointed Joseph Morrissey, the company’s executive vice president and head of Manufacturing & Supply, as interim chief executive officer. Board Chair Carrie Cox will take on the additional role of executive chair on an interim basis to support Morrissey. Additionally, Director Robert Essner will assume the role of lead independent director.
Findings of the internal investigation
The Audit Committee oversaw an independent investigation following concerns raised about the company’s wholesaler sales practices for its Nexplanon® product.
The investigation concluded that certain U.S. wholesalers were asked to purchase more Nexplanon than required at the end of specific quarters: the fourth quarter of 2022, the third and fourth quarters of 2024, and the first, second, and third quarters of 2025.
While the excess sales represented less than 1% of the company’s consolidated revenue for the respective years, the investigation determined that these practices were used to enable Organon to meet its guidance and/or external revenue expectations.
The Board concluded that these wholesaler sales practices were improper and that certain of the company’s prior statements were inaccurate or incomplete.
In response, the company has terminated the employment of its Head of U.S. Commercial & Government Affairs and is implementing remedial actions to improve its financial controls and address any material weaknesses. The findings to date do not necessitate a restatement or revision to any previously issued financial statements, and there was no finding that the chief financial officer was aware of the improper practices.
The Board is immediately initiating a search for a permanent CEO, considering both internal and external candidates.
The new interim leaders were praised for their experience. “The Board has confidence in Joe Morrissey’s ability to drive operational excellence,” Cox said. “Joe has extensive experience in senior leadership roles and is a highly regarded leader inside the organization.”
Morrissey, who has been with Organon for over four years, previously spent more than 30 years at Merck & Co., Inc. He stated, “I look forward to continuing to execute on Organon’s business strategy, including further delivering the business and driving cost savings while achieving revenue growth.”
Essner added that Cox’s “deep experience leading global pharmaceutical businesses, coupled with her extensive Board experience, will complement Joe’s skills and make her the right partner to assist Joe in leading the company forward.”
